With recent labor shortages in the pallet industry, finding qualified workers can be a challenge. Several HR departments have achieved success with help from temp staffing agencies. Two western pallet companies share how temp agencies have boosted recruitment efforts and located valuable workers.
Beatrice Vasquez, corporate secretary and CFO of Oxnard Pallet Company in Oxnard, California, has been using local temp agencies for hiring for the past two and a half years. Initially, Oxnard Pallet did internal hiring as well as used signs and advertising. “We were having such difficulty finding people and keeping them,” recalled Vasquez.
Using staffing agencies used to be a more expensive approach, but Oxnard Pallet worked out a deal with three agencies in the area. The agency hires a worker for ninety days. They pay salaries, workman’s compensation, file paperwork, immigration papers, and other new hire logistics. “If the new hire stays past the ninety-day mark, we bring them on board with us,” said Vasquez. “We have been doing all of our labor-intensive hiring through temp agencies. We use online job sites, such as Monster or Indeed, to hire truck drivers or office workers.”
The first ninety days are the most challenging. Training and labor are intense. This introductory period is the time where the most injuries occur, whether through inexperience or occasionally, someone wanting a payout. “I really feel this is why more companies are using temp agencies; the fact that they handle workman’s comp issues,” continued Vasquez. The agency handles all of the claims that occur within the first ninety days. When there is a serious injury, the agency determines whether the company is at fault or if it is due to inexperience or other factors.
Carly Taylor, senior plant manager with 48forty Solutions, helps run the Oregon Pallet facility in Salem, Oregon. Taylor stated that her facility has been using temp agencies for about ten years. Taylor explained, “It’s not the normal temp relationship. A lot of the time we do our own recruiting. We go to them and say, ‘You don’t have to recruit for us.’ We are only keeping these guys for ninety days, so a lot of times you are going to get a better rate than their normal rate. They’re not recruiting. They’re not giving you their best guys. If you throw everything at them for ninety days, you are going to get a better deal than coming in off of the road and asking them for just one person. It’s an ongoing relationship.” Oregon Pallet recruits, then the staffing agency handles the hiring.
After ninety days, Oregon Pallet has the option of bringing them back over to their payroll. Initially, the person was hired for ninety days with the expectation that the job would be over at the end of the time period. It is a bonus if the company chooses to hire them permanently by bringing them over from the temp agency. It isn’t expected or required, so it is nice to be able to offer the person that full-time position.
Taylor explained, “People get really excited when it’s time to come on to the payroll. They know they have done a good job when they are brought into the office for their reward. It’s cool to be able to offer them a position and benefits. They feel accomplished.”
“We use several agencies for recruiting and if we run into issues. Sometimes we pay a recruiting rate with one agency because that is quite a bit of the rate you are paying. Other times, I offer an open house through Craig’s List and bring them five people to hire,” said Taylor. This is a bold move away from the traditional temp agency/company relationship. “We are thinking outside of the box, just a little bit.” It is all about how the relationship with the staffing agency can benefit both them and the company that is looking for new hires.
Like Oxnard Pallet, Oregon Pallet also uses temp agencies for their laborious positions, where someone could get hurt. Taylor suggested, “It makes sense to pay a little more to protect yourself and insulate yourself from those types of accidents.” Prior to using temp agencies, “we were having a lot of workman’s comp issues. Whether from inexperience, being unfit for the job, or people wanting money, one injury can affect a hundred people.”
While the positives of using a temp agency for recruiting for labor intensive positions are many, there are some negatives to consider. Those that are currently working for the temp agency can appear disconnected from the rest of the workforce. Checking in with them frequently is necessary, as is relying on the job counseling offered by the agency. They want to help and make it a smooth transition so the person works out well. Also, during the first ninety days, it is more likely that a worker will decide to take another job within the staffing agency. The agency allows them an “out” if the new hire no longer wants to work with the company. While this can be frustrating for the company as the company loses a potential candidate who they spent time training, it helps that the temp agency handled all of the onboarding paperwork involved with the hire.
While working with new recruits, Vasquez shared another challenge within the workforce. As new people come on board, those who have worked longer for the company know there is a pay difference because of the shifting economy and need for workers. Oxnard Pallet has had to be creative in offering incentives for their more experienced employees. While they maintain safe working standards, if a worker increases their production output, they have the opportunity to receive a monetary bonus.
According to both Vasquez and Taylor, companies interested in seeking out temp agencies for hiring should do so thoroughly. Vasquez recommended, “Visit several agencies to see how they are set up. Allow the agency to come to your company. Ask questions and communicate your needs.” Develop a partnership with the agencies as an extension of your company. Even something as simple as including representatives from the agency in your company’s Christmas events builds on that relationship. Carly Taylor added, “Talk to everyone out there; don’t just go to one. Push them against each other. Don’t be afraid to go out there and get ten bids. Push and ask the hard questions.”
While taking the temp agency route may be more expensive initially, the workman’s comp protection as well as onboarding paperwork are incentives to at least explore this option. As Taylor suggested, if you think a little outside of the box, you can find a relationship with temp agencies that can be a benefit to everyone involved.
